Binary Options Auto Trading

Automated Binary Options trading offers a fairly new way of trading with binary options. While auto trading systems or ‘robots’ are nothing new to the world of financial investment, they are new to binary options.

Automated trading in the form of ‘expert advisers’ have been widely used on platforms like MetaTrader to trade Forex with variable degrees of success. As with all approaches to trading approaches they have both their supporters and detractors.

Often these systems have been pitched as the most efficient and therefore potentially profitable way to trade. A system that can be left to make money without any intervention by the trader is viewed by many as the ‘holy grail’.

The autopilot strategies that these systems use present a solution whereby you can sit back and simply let the system do the work for you.

What Is Automated Trading?

Automated binary options trading describes any trading that takes place on an account with minimal or no input from the trader. Instead it relies on computer software to make the trading decisions on the account. This is most frequently installed on your computer or connected to your trading account via the internet.

Once configured the software is left to scan the market to identify profitable trading opportunities. When a signal is generated is can then automatically execute the order in your account. The asset that is traded, the frequency of trading and the amount risked are usually determined in user definable settings in the software.

This automated approach to trading offers a preferred solution for those who want to make money from binary options but who lack either the time or skills to trade manually on their account. This solution is also ideal for people looking to make a second income from financial trading.

Binary options automatic trading falls under two main categories. These are known as ‘Robot’s and ‘Auto traders’. A description of how each works is given below.

Binary Options Robots

The robots for binary options trading are so called because they offer a fully automated trading solution. They tend to be based upon algorithmic trading methods which rely upon the use of technical indicators to identify opportunities and generate signals.

Pre-programmed software algorithms scan the markets looking for potentially profitable trading opportunities. The term ‘robots’ was coined as they offer an impassive approach to trading which removes the element of human emotion from the process.

Once an opportunity is identified the software can do one of two things. At its most basic it can simply alert the trader to the signal. The trader can then act upon this alert by placing the signal in his account.

More sophisticated robots take this a stage further. These can fully automated the trading process from start to finish. In addition to identifying trading opportunity they can also execute the trade in your account. These require that you run both your trading account and software on the same computer, with specific settings allowing communication between the two pieces of software.

Automated Binary Trading

Autotraders offer a similar end result for the trader but do so in a different way. Binary options auto trading software provides a mechanism for connecting accounts and for allowing signals to be ‘copied’ from one account to another. It is simply a mechanism for replicating a trade from one account to another rather than identifying the trading opportunity in the first place.

For example, in this scenario rather than relying on software to generate the signal, professional traders can push their own manual signals across to connected accounts. This would normally be to subscribers who want to replicate signals in their own accounts.

Ultimately both solutions achieve the same end for the trader. This is to automate the quest for profits on an account.

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Trading on the financial markets with Binary Options has significant risk. You could end up losing all of your deposited capital. Before trading you should thoroughly familiarize yourself with and accept the risks involved. If you are unsure as to whether this form of trading meets with your objectives then please seek independent financial advice and refrain from acting on any information on this website. Please read our Risk Disclaimer for more information